0.4ppl milk price increase for Sainsburys producers needs to be addressed
Posted on: 18/03/22
The Sainsburys model is looking like it’s the slowest one in town and is way off the realities of the market.
The latest 1st April liquid standard litre price is only 34.3ppl (Muller SDDG) and 34.18ppl (Arla SDDG)
Somehow if Sainsburys want to continue with an aligned pool they simply have to find a way to make a significant boost to this 1st April price.
Ian’s inbox is busy with Sainsburys aligned farmers who want a way out as quickly as possible because they are haemorrhaging huge amounts of money. Some are exploring creative ways whilst others claim they will serve notice by 31st March
If Sainsburys want to secure the milk they require from their farmers they have to move quickly and adjust the model, if not the best solution might be to cease the aligned pool and organise an orderly exit now. Forcing producers to stick with the model and lose money will not succeed.
It’s a fact cheap milk provided by aligned farmers may be great for the consumer but its not sustainable, its undermining others and this is certainly not a short-term price blip.